AFP survey: Donations
to nonprofits dip sharply

Fewer than half – 46 percent – of U.S. charities raised more money last year than in 2007, according to the Association of Fundraising Professionals, a new low in the survey’s eight-year history. Typically about 60 percent of respondents raised more money than in the previous year.

The previous low was reported in 2002, when 49 percent of organizations raised more money than in the previous year. "This is probably the most challenging environment that most fundraisers have seen in their lifetimes," AFP president and chief executive officer Paulette Maehara said. "The dip in fundraising is particularly discouraging, given the increased demand for services in these very difficult economic times."

The amount of money being raised has also dropped substantially. 40 percent of organizations said they raised less money in 2008 than in 2007, while 14 percent said they raised about the same amount in both years.

Almost two thirds of the organizations that did raise more money in 2008 saw increases of 20 percent or less and only 5 percent reported increases of 50 percent or more. Two years ago, 23 percent saw increases of 50 percent or more.

Looking ahead to 2009, only 28 percent of charities believe their organizations will raise more money this year than in 2008, a historically low level of optimism in the survey’s history. About one third estimate they will raise less in 2009.

Meanwhile, in a sign of the times, the Beverage Information Group reported on March 30 that overall consumption of distilled spirits, wine and beer rose in 2008, mostly from consumption of value-priced spirits, beer and wine.